Vehicle or automobile insurance exists to provide financial protection against physical damage and/or bodily injury resulting from traffic accidents and against liability that could arise therefrom. Typically, a customer purchases a vehicle insurance policy for a policy rate having a specified term. In exchange for payments from the insured customer, the insurer pays for damages to the insured which are caused by covered perils, acts, or events as specified by the language of the insurance policy. The payments from the insured are generally referred to as “premiums,” and typically are paid on behalf of the insured over time at periodic intervals. An insurance policy may remain (or have a status or state of) “in-force” while premium payments are made during the term or length of coverage of the policy as indicated in the policy. An insurance policy may “lapse” (or have a status or state of “lapsed”), for example, when premium payments are not being paid, when a cash value of a policy falls below an amount specified in the policy, or if the insured or the insurer cancels the policy.
Some policies may be based at least in part on an envisioned distance that the vehicle may travel during a specified term period (often six months). However, the distance is often an estimation that does not accurately reflect an actual distance traveled by the vehicle. Further, the amount of miles that a vehicle travels (and the time that the vehicle is in use) on a month-to-month or other periodic basis may vary significantly. For example, in some cases, a driver may only need a vehicle for a week-long period, or for a daily commute, or for other usages. Therefore, conventional vehicle insurance policies that are priced according to a specified term may not accurately reflect the actual mileage or time that a vehicle is driven, metrics that are difficult to estimate, determine, and/or verify.
Accordingly, there is an opportunity for systems and methods to more effectively and efficiently price vehicle insurance policies. In particular, there is an opportunity for systems and methods to process vehicle operation data to generate insurance policy offers that are more tailored to the intended and actual use of a vehicle.